In a letter to the President, U.S. Senator Susan Collins urges support for a number of reforms, included in legislation that she has introduced, that are essential to jump-starting the nation’s stalled economy and getting Americans back to work.
Senator Collins introduced her 7-point jobs plan in February. Based on extensive conversations she had with small business owners and workers in Maine, her plan is aimed at creating jobs, investing in education and training, assisting small businesses, reinvigorating American manufacturing, and eliminating bureaucratic red tape.
Following is the full text of Senator Collins’ letter to the President.
The President
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Dear Mr. President:
The discouraging jobs and economic growth data released in recent weeks underscores the severe challenge that we, as a nation, continue to face: nearly two years after the official end of the latest recession, unemployment is rising again, while GDP growth has weakened to a tepid 1.8 percent. At this stage in past recoveries, by contrast, economic growth was far stronger. In late 1984, for example, GDP growth was twice as strong, and unemployment had fallen to 7.0 percent, from a recession-high of 10.8 percent.
We must not allow low economic growth and high unemployment to be accepted as the “new normal.” The lack of growth in our economy not only deprives hard working Americans of the jobs and opportunities they deserve, it also deprives the federal government of revenues needed to address our nation’s long-term budget challenges.
In February, I introduced the “Seven Point Plan for Growing Jobs Act” (S. 361), which proposes a number of reforms essential to jump-starting our stalled economy, getting Americans back to work, and making sure our workers have the tools they need to remain the most productive in the world. An important focus of my bill is to reduce the burden of taxation on our nation’s job creators, especially small businesses. With respect to tax relief to spur the creation of private-sector jobs, my bill would:
• Reduce temporarily the employer portion of the payroll tax by two percent on the first $50,000 of payroll;
• Provide 15-year depreciation for commercial and residential rental properties, restaurants, retail, and leasehold improvements;
• Make permanent small business expensing under Section 179 at $125,000, phased-out at $500,000; and
• Extend the Research & Experimentation credit for five years.
As with the payroll tax reduction we provided to employees in December, my proposed reduction in the employer portion of the payroll tax requires that Treasury reimburse the Social Security trust fund using general revenues. Given the current deficit and debt outlook, this tax relief must be paid for through reductions in spending. I believe that we can find the necessary offsets by eliminating wasteful spending – such as the ethanol subsidy – and by implementing discretionary budget cuts. Obviously, this tax relief must go forward in a manner consistent with the successful resolution of our long-term debt challenge.
This tax relief, while essential, must be coupled with meaningful regulatory reform if we hope to lift our economy from its current low-growth trajectory. Too often, federal agencies adopt rules without considering the burden those rules impose on jobs, or the ability of our businesses to compete. America’s job creators cannot be expected to add jobs when they are tied-up with red tape. For this reason, my bill would also:
• Require federal agencies to assess costs and benefits, and consider the impact on small businesses, job growth, consumer prices, and energy costs before imposing new regulations;
• Require federal agencies to comply with public notice and comment for significant “guidance documents,” and;
• Provide assistance to small businesses in seeking waivers of penalties for first-time non-harmful paperwork violations.
With unemployment stuck at unacceptably high levels, it is more important than ever that we do all we can to encourage the private sector to create the jobs Americans want and deserve. Toward that end, I encourage you to consider the proposals I have outlined in this letter.
Thank you for considering my views on this important matter.
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